Hideo Nakamura Coinbase, the cryptocurrency trading platform, is discontinuing its ‘Givecrypto’ project, a philanthropic endeavor aimed at distributing cryptocurrency to the needy. Coinbase acknowledged, “While Givecrypto has reached thousands over the years, we’ve realized that our approach of unconditional cash transfers hasn’t yielded sustainable change.”
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Closure of Coinbase’s Givecrypto Initiative
Coinbase, listed on Nasdaq as COIN, recently announced the cessation of its Givecrypto initiative. Originally conceived by CEO Brian Armstrong, this non-profit aimed to provide cryptocurrencies to those in financial need. The exchange expressed in its announcement:
Despite its initial success, the initiative fell short in generating enduring change through its strategy of unconditional monetary gifts.
Givecrypto was a key charitable venture by Coinbase, intended to “enhance global economic freedom,” as described by the company. The decision to discontinue comes after considerable deliberation, with the firm acknowledging the necessity for a different approach.
Launched in June 2018 by Armstrong, Givecrypto was designed to “economically empower individuals by globally distributing cryptocurrency,” particularly targeting residents in emerging markets and those affected by economic turmoil. However, a Fortune report from September 2022 highlighted the shortfall in Coinbase’s ambitious $1 billion crypto charity goal, causing dissatisfaction and difficulties for employees involved.
Coinbase’s recent statement clarified:
Over time, Givecrypto successfully distributed cryptocurrencies to numerous people in need, achieving temporary improvements in their situations. The initiative also demonstrated the efficiency of cryptocurrencies in facilitating small, cross-border transactions directly to recipients, bypassing intermediaries.
Regrettably, the project did not manage to deliver lasting benefits, with beneficiaries reverting to their original financial status after the aid ended, as noted by the company.
Coinbase plans to allocate the remaining Givecrypto funds to Brink and Givedirectly. The firm notes that while Brink focuses on reinforcing Bitcoin’s software and protocols, Givedirectly is better positioned to ensure that crypto donations effectively reach and sustainably help those in dire need.
We invite your thoughts on Coinbase’s decision to end the Givecrypto project. Share your views in the comments section below.
Frequently Asked Questions (FAQs) about Coinbase Givecrypto
Why is Coinbase discontinuing the Givecrypto initiative?
Coinbase is ending the Givecrypto project because, despite its success in distributing cryptocurrency to thousands in need, it has not been able to create sustainable, long-term change through its model of unconditional cash transfers.
What was the purpose of the Givecrypto initiative?
The Givecrypto initiative, launched by Coinbase CEO Brian Armstrong in 2018, was a nonprofit aimed at financially empowering people by distributing cryptocurrency globally, especially in emerging markets and regions experiencing financial crises.
How did Givecrypto operate?
Givecrypto worked by distributing cryptocurrency directly to individuals in need, facilitating small, cross-border monetary transactions without intermediaries. The aim was to provide short-term financial assistance and improve economic freedom.
What will happen to the remaining funds of Givecrypto?
The remaining funds of Givecrypto will be donated to Brink and Givedirectly. Brink focuses on strengthening Bitcoin software and protocols, while Givedirectly will ensure the crypto donations reach those in need more effectively.
What was the impact of Givecrypto?
Givecrypto had a measurable short-term positive impact on the recipients by providing them with immediate financial aid. However, Coinbase acknowledged that the initiative failed to create lasting change, with recipients returning to their baseline financial status after the aid ceased.
More about Coinbase Givecrypto
- Coinbase Official Announcement
- Fortune Article on Coinbase’s Charity Ambitions
- Brian Armstrong’s Blog on Givecrypto Launch
- Overview of Givecrypto’s Impact
- Brink’s Bitcoin Protocol Development
- Givedirectly’s Approach to Crypto Donations
